Wal-Mart Stores, Inc. (NYSE: WMT) today reported financial results for the quarter ended July 31, 2012. Net sales for the second quarter of
fiscal 2013 were $113.5 billion, an increase of 4.5 percent from $108.6 billion in the second quarter last year. Net sales for this quarter
included a negative currency exchange rate impact of approximately $2.2 billion. Without the currency impact, net sales would have been $115.7
billion. Membership and other income increased 4.7 percent to $762 million. Total revenue was $114.3 billion, an increase of 4.5 percent
from last year.
Income from continuing operations attributable to Walmart for the quarter was $4.0 billion, up 5.7 percent from the second quarter last year. Diluted earnings per share from continuing operations attributable to Walmart (EPS) for the second quarter of fiscal 2013 were $1.18. By comparison, last year's reported EPS were $1.09. The company had several items last year that negatively impacted the second quarter by approximately $0.03 per share.
Strong earnings performance
"Walmart had a strong second quarter, and I'm pleased with the earnings and overall results," said Mike Duke, Wal-Mart Stores, Inc. president and chief executive officer. "We had positive comp sales in Walmart U.S. and Sam's Club, as well as each of our International markets, reinforcing that customers rely on Walmart to help them save money and live better."
The company leveraged operating expenses for the second quarter, delivering on its commitment to reduce costs, improve productivity and invest in price.
"Our intense focus on delivering productivity initiatives and reducing costs allowed us to invest in lower prices for our customers and to deliver strong profitability for shareholders," said Duke, who also highlighted the successful performance of the company's three operating segments.
"I'm really pleased with the continued momentum in our Walmart U.S. stores, evidenced, in part, by three consecutive quarters of positive comp traffic and four straight quarters of positive comp sales," Duke added. "The team is very focused on delivering broad assortment and price leadership. Walmart's low prices drive greater customer loyalty.
"Sam's Club had strong comp sales for the quarter. The quality and innovation behind merchandising and services are contributing to strong comps," said Duke. "The result of Sam's initiatives is greater value, which helps attract new members and strong renewals.
"We are also pleased with the sales and profitability of Walmart International," Duke said. "Our goal is to achieve more balance between profitability and returns, and we will do that by improving operational and sales productivity."
Duke also commented on the economic challenges facing customers.
"The paycheck cycle remains pronounced in the United States and in our International markets," Duke said. "Given continuing economic pressures, we believe that our price leadership and value are growing in importance to customers across income levels."
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